I am not exactly sure I understand your question? are you asking why your signal from your DMR-E85H isn't HD?

If that is the case, after looking at your DMR-E85H's specs it only provides a standard 480i or 480p broadcast.

But if your question is if you have a HDTV and a BluRay player, with BluRay DVD's why your not receiving a HD picture it maybe due to your connection. for my understanding you should be able to connect the standard component cables from the BluRay player to your television to receive the HD signal, but HDMI may be best.

Projection TV's have a very nice picture, but they still do not look as sharp as a plasma, LCD or CRT. It is an HD picture, it is just the problem with projection TV's (depending on just how bad the picture is), it should still look good, but it will not compete with the others types of TV's

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When properly connected to a High Definition display or TV, Blu-Ray Disks (BD) should play crystal clearly. Inserting an old "non-Blu-Ray" disk (or the original "DVD") in the Blu-Ray player will display a comparatively "fuzzy" picture. This is the difference between High Definition and Standard Definition. A "BD player" can not "upgrade" the picture quality on DVDs to that of a BD or High Definition picture.

Rent, purchase or choose Blu-Ray Disks (BD) whenever a choice is offered to view the High Definition version of a movie or video. Selecting the DVD version will provide the lower quality or Standard Definition version of the same movie or video.

Check the covers or disk itself to determine if the movie or video is in DVD or BD format. That will tell you what you can expect for picture quality.

There are three only three possibility's here, one there is a problem with the HDMI HOOK UP ON THE BACK OF THE TV, SECONDLY IT COULD BE THE DVD PLAYER IS NOT COMPATIBLE WITH THAT TV, AND LASTLY YOU MIGHT NEED TO HAVE THE TV SERVICED FOR SYSTEM ISSUES

Most projection tvs even if they say HD need a converter box. This is because the HD tv part is referring to playing hd video through the component inputs. This input is typically where you would connect a dvd player or blue ray player. Most projection tv's where made before the transfer of analog to digital tv.
Hope this helps